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Special Report With Bret Baier

News/Business. Bret Baier. The latest news from inside the Beltway.

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00:59:59

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U.s. 11, Afghanistan 11, Us 6, Obama 5, Iran 5, Iraq 4, Graham 4, Michael Steele 3, Steve 3, Charlie Crist 3, Bill Kristol 3, A.b. 3, Washington 3, Russia 3, Pentagon 3, United States 3, Mike Emanuel 2, Marco Rubio 2, The U.s.o. 2, John Spratt 2,
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  FOX News    Special Report With Bret Baier    News/Business. Bret Baier. The  
   latest news from inside the Beltway.  

    July 3, 2010
    4:00 - 4:59am EDT  

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actually i am out of time and have to go back to greg. >> thank you, andy. lauren, always a pleasure having you on the show. bill shultz, who cares. rick, congratulations on the clan. that does it for me. the clan as in the babies. i'm greg gutfeld, see you next time.
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>> bret: checking world headlines. the kyrgyzstan constitution went in effect today. 90% of the ballots cast in sunday election were in favor of it. it establishes european parliamentary system. six suicide bombers stormed a u.s. aid compound in northern afghanistan early today. at least four other people were killed. none of them americans. two were wounded. the taliban claimed responsibility. meantime, general petraeus arrived in kabul. he is taking over u.s. and nato operations in afghanistan, following the resignation of general stanley mcchrystal last week. media reports say iranian president mahmoud ahmadinejad wants to ban signature western products such as coca-cola. in retaliation for new
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sanctions against his nuclear program. chief washington correspondent jim angle looks at the latest effort to put the squeeze on iran. >> reporter: president obama now signed a bipartisan bill passed by congress to tighten sanctions on iran in hopes to deter the nuclear program. >> there should be no doubt the united states and the international community are determined to prevent iran from acquiring nuclear weapons. >> the u.s. action follows u.n. security council passage of additional sanctions in early june and the u.s. sanctions build on those. >> is it going to be enough to get them to stop enriching uranium? probably not. but it will make life more difficult for them and make the cost of doing business more expensive. >> the way to think about sanctions on iran would be to picture asive with 1,000 different holes. united nations has a habit of plugging three or four holes at a time but you have hundreds more. >> one element of sanction is
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discouraging any overseas company or bank doing business with the ion rainian government -- iranian government offering them a choice. >> choose islamic republic or the united states. no country in their right mind, even china and russia would choose iran over the united states. >> another aspect is punish any companies that supply or ship refined gasoline to iran. >> even though iran is one of the world's largest producers and exporters of oil, they have bad refining capacity. >> they have been relying on import for 40% of refined gasoline and are moving quickly to reduce that. even with sanctions, iran has direct flights to north korea, flier of missile technology. and that worries u.s. intelligence. >> iran will have an intercontinental ballistic missile capability by the year 2015. it basically means whatever containment we're talking about now, iran could leapfrog over in a matter of years. >> when president obama took office, he first sought to court iranians.
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at that point, they didn't have enough uranium to build a single bomb but they never slowed down. >> when we first started talking about sanctions they had enough low enriched uranium for one bomb. by the time we imposed sanctions, enough for two bombs. >> now sources say the intelligence community is about to issue a new assessment to save the iranian nuclear weapon program is further along than anyone thought. bret? >> bret: jim, thank you. the justice minister in cyprus says he believes an alleged russian spy who was arrested then let out on bail has fled the island. back in the u.s., three more suspects in the spy ring had court hearings today. correspondent david lee miller is following the story from new york tonight. good evening. >> good evening. all three defendants appeared in court in alexandria waived right to bail hearing and remain behind bars. prosecutors said two of the accused spies living as a married couple admitted to using fake names.
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according to court papers the couple had two safe deposit boxes stashed with $100,000 in cash. as well as fake passports. prosecutors say the couple's two young children will soon be taken to live with relatives in russia. a third defendant, mikhail simenko also in court and he did not use a fake identity, and was in the u.s. on a work visa. a visa that has been pulled. authorities say in the apartment, they found computer equipment that could be used for secret communications. in another development, attorney for accused spy juan lezaro says her client denies making incriminating statements to authorities. prosecutors said that lezaro admitted using fake name and having more loyalty to what he called the service than his own son. his attorney says her client never made any such confession and is the victim
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of political witch hunt. bret? >> bret: david lee miller live in new york. thank you. we will bring you up to date on a famous military organization that is changing with the times. we fly over the site of the deepwater horizon oil spill next. ?)?)?)?)?)?)?)?)?)?)?)?)?))
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♪ cause it's the little things that mean a lot ♪ oh, thank you. you're welcome. what a nice young man; my goodness.
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>> bret: and now some fresh pickings from the political grapevine. republican national committee chairman michael steele is under fire from conservatives over comment he is made about president obama and the afghanistan war. here is what he said at a fundraiser thursday in connecticut. >> this was a war of obama's choosing. this is not, this is not something that the united states had actively prosecuted or wanted to engage in. well, if he's such a student of history has he nod understood that you know that's the one thing you don't do, engage in a war in afghanistan, because everyone who has tried over a thousand years of history has failed. >> bret: bill kristol, fox news contributor is calling on steele to resign. now, he writes in an open letter, "your comment is more than an embarrassment.
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it's an affront, both to the honor of the republican party and to the commitment of the soldiers fighting." rnc is not specifically addressing the controversy but calls steele a consistent and vocal supporter of the wars in afghanistan and iraq. a new poll shows three in ten americans describe themselves as tea party supporters. equal to the number who call themselves republicans. the "usa today" gallop poll also says while whites and anglos make up the bulk of the tea party movement, hispanic, asian and african-american americans combine to make up almost one quarter of the ranks. south carolina republican senator lindsey graham says his bipartisan stance on the range of issues put him at odds with the tea party. the "new york times" magazine reports graham dissed the movement saying, "the problem with the tea party, i think it's just unsustainable. it will die out." graham also addresses a recent incident in which a tea party speaker suggested
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graham was working with democrats out of fear they would expose him as a homosexual. graham replied with a smirk saying, "like maybe i'm having a clandestine affair with ricky martin. i ain't available. i ain't gay. sorry." final limasnbc anchor chris matthews famously got a thrill up his leg on candidate obama speech on race two-and-a-half years ago but apparently it's contagious over there. fellow fellow anchor witt said i got chills in the speech. she said it was heavy on detail and direction. the "washington post" not exactly a conservative paper didn't feel the same way, writing, "the president did not outline any details for reform or set a timetable for reform bill." for decades, the uso provided american military personnel with a place to relax.
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occasionally some entertainment. and respite from duty. white house correspondent mike emanuel reports from the pentagon now the u.s.o. has evolved, much as the american mission around the world has changed. [ music ] >> reporter: this u.s.o. event as the pentagon combines the nostalgia of the group's history with new purpose. volunteers have care packages for troops serving in afghanistan. >> a touch of home. it brings a smile to their face and degree of comfort to know they are supported in what they are doing. you have can't under estimate the impact of it. >> reporter: the name u.s.o. conjures up images of bob hope in war zones. >> i just want you boys to see what you are fighting for, that's all. [ laughter ] >> reporter: but now the organization entirely funded by private donations is also trying to help wounded warriors and their families pick up the pieces, including charles eggalston who was seriously wounded by i.e.d. blast in iraq and spent three-and-a-half years in a
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military hospital. >> these guys actually are the national treasure to stay the least. they do the part of the work that they forgot to do. i guess they didn't think about the wounded warrior. but the u.s.o. filled in the gap. >> reporter: it's part of the new u.s.o. says the group's leader. >> we changed, because the needs of the troops and families changed. >> reporter: many of the troops have been doing multiple deployments to iraq and afghanistan. >> since the start of the conflicts, some 40,000 have come home having suffered wounds and injuries on the battlefield. we work to try to meet the needs. >> reporter: the u.s.o. is building two new multi-million wounded warrior centers in the washington area for troops in their families as a gift from the american people. >> it will be like christmastime really. it means so much to the families. >> reporter: on this day, the u.s.o. is providing a different gift to service members far from home. >> the 2000 care packages stuffed here are combined
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with 3,000 from other locations to send to u.s. troops serving in afghanistan, where they have been fighting now for almost nine years. the idea is to help keep them going and let them know america cares. at the pentagon, mike emanuel, fox news. >> bret: great story. we talk about today's unemployment numbers, the state of the economy and the politics surrounding the entire issue. fox all-stars join me after the break.
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the recession dug us a hole of about 8 million jobs deep. we continue to fight head winds from volatile global markets. we still have a great deal of work to do to repair the economy and get the american people back to work. >> i think what you are seeing is what is a fact of life about real recoveries. they come in fits and starts. no question, we are going through a period of turbulence now, so that day
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where it's slow and steady and digging out what the president described as a very big hole. >> bret: it seems like christina romer would be happy about most data. 9.7 to 9.5, the unemployment rate. it did fall but it's not exactly a great story overall for the administration, for this economy. here is what the minority leader in the house said about it. how much longer are we going to continue with this disastrous spending spree that is scaring the hell out of the american people and piling debt on our kids and grand kids? instead of whining and making excuses, president obama should rein in spending, keep taxes low and give small businesses the certainty they need to get back on their feet. the private sector added 83,000 jobs last month. that is 25% short of what analysts predicted. let's bring in the panel now. stephen hayes for "weekly standard." a.b. stoddard, associate editor of the hill, and syndicated columnist charles krauthammer. charles? >> one of the numbers that we see that is always misleading
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is the drop in the unemployment rate. it went down. but that's because 650,000 americans stopped looking for jobs. so that number, the way we count it gets removed from the unemployed. so it artificially lowers the number. if you were to count them, the rate would have gone from 9.7 to 10.1. the other disturbing number as you said is that the private sector only produced 83,000 jobs, which is very weak, weaker than it was earlier in the year. now, some are predicting a double dip recession. that means we are now headed downward and we'll have a second recession. that is fairly unlikely. what you are getting is a slowdown in the rate of recovery, which means a fairly low slope for the recovery, which means could be years of chronic unemployment. that could be almost as bad. the ones predicting the double dip are the ones on the left who want another trillion-dollar stimulus, screaming the sky is going to
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collapse. otherwise. i think that will be unwise. one reason we're in trouble now is because of the huge debt, people know we are look at high inflation or financial collapse on european scale. >> bret: there is a consumer confidence problem, a.b. >> the housing market plunging and then concern in the market over the feeling across europe and other countries overseas that they need to consolidate immediately and take care of their debt and deficit. and that i think if you look at the entire picture, climb inside the numbers today from the report. it's very tough politically, because it's so close now, the june jobs report is so close to the mid-term election, there is a permanent psychology that is going to set in with americans and with voters, that the democrats can't really do anything in congress to produce jobs,
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that the unemployment picture, the unemployment situation is stubborn and unrelenting and that there is no silver bullet around or silver lining around the corner. that this is going to be, we'll have a sluggish growth. the potential for double-dip for a while, for a long time to come. i think once that psychology takes hold, it's bad not only for the consumer confidence, spending but bad politically for the democrats. >> bret: let's go back, steve, to the president's speaking before, just weeks before the economic stimulus package was passed. and what he was predicting back then. >> the report confirms the plan will save or create 3-4 million jobs. 90% of the jobs will be created in the private sector. mainly 10% are mainly public sector jobs we save, like the teachers, police officers, firefighters, and others who provide vital services in our communities. >> bret: that was ten days before his inauguration and the administration has still
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tried to sell the benefit of the economic stimulus package. but you listen to that and look at that report. it's not there. >> this is the key question going into the 2010 mid-term election. who deserves the blame? there is polling that shows that the voters were still blaming as of a couple months ago george w. bush more than they were blaming president obama. because you have statements like that, then you go back and look at the speeches he was giving at the end of the 2008 presidential election. one i read today, october 13, 2008, where he takes a lot of time basically laying out the stimulus. he called it his rescue plan and says this is what is going to save us and what is going to keep us fiscally solvent and put us on the track to recovery. he then predicted without the stimulus, we could see unemployment of 8%. some economists are saying by the end of 2009. here we are. we've done everything he said we were going to do. it has been 18 months. it hasn't worked. at some point that reality will dawn on them.
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robert gibbs, sent out a sweet today on twit -- tweet today on twit blaming the bush administration again. it's not going to work. >> bret: obviously, the federal reserve played a big part in keeping us from the precipice of whatever was lying out there. >> malign tarp, which i think was very important. a joint effort of obama and bush. but what is really saying is the politics of this has so shifted. i think we're now at the stimulus exhaustion. people looked at the stimulus of last year and they concluded it was worthless, a waste of money. on the voting for example for extending unemployment benefits, a lot of democrats were against it, republicans as well, because they are more worried about debt than about the sluggishness of the economy. that is new. three months ago that wasn't the case. >> bret: quickly, a.b., how does it play politically, unemployment benefits not approved by the congress because of concerns of paying for it? >> difficult for the congress
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to go home for the july 4th recess and answer why they couldn't extend the benefit. whats to the benefit and cash-strapped state aid? it's tough for them politically. >> bret: don't they just blame the republicans and call it a day? >> they do, but really, the republicans have the stronger message, which is they have the large majority in the congress and they should be able to pass them. the nervous democrats, nervous about the deficit to keep them from getting this passed. >> bret: log on to the home page at foxnews.com/specialreport. let us know what you think. the story that is most important this week. up next, the friday lightning round and your choice online, topic of the week. oooccccccccccc
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>> bret: every week on the
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foxnews.com/specialreport home page, viewers vote on the topic to discuss this in the friday night link round. the winner is -- 2010 race that gets more interesting. okay, that won. back with the panel. charles? >> two races where the challenger had a good victory earlier last month in the primary. had a bump and now losing it. sharron angle. and pat toume. he was ahead and is now behind. >> bret: there you see them. a.b.? >> remember governor charlie crist of florida who had to christ the senate g.o.p. primary because he went to free fall and was losing by 30 points to marco rubio, the
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former house speaker from florida? marco rubio, a rising conservative star, and tea party darling. great hope of the republican party. named as possible v.p. contender for 2012 is now behind charlie crist in every poll. the race has blown up. charlie crist is racing around the state being the governor, managing the oil spill. and the democratic side has brought an eccentric billionaire in the race who is catching up with kendrick meek, the congressman and leading contender to the point where democrats are probably going to tacitly help crist if he wins the primary. jeff green. >> good race. i'm interested in the race of john spratt from south carolina, democrat and chairman of the house budget committee. he's interesting because if this election broadly understood is about debt and deficit, this is a ground zero. he is someone who decided to go along with the broader
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democratic strategy of not passing a budget resolution. which essentially doesn't -- it eliminates caps and allows democrats to spend. they say they will have a target for discretionary spending. nonsense. i think he has a serious challenger, increasingly serious challenger in mulvaney a fiscal conservative who can take someone regarded as a real workhorse, john spratt, liked by his colleagues, had been moderate and could put his seat in jeopardy. >> bret: michael steele coming under fire. bill kristol, editor of "weekly standard" and fox news contributor is calling for him to resign because of something he said at an event thursday saying afghanistan was a war of obama's choosing and that america should never get into a land war in afghanistan because every time anybody does, they fail. what about this comment and what it means? steve? >> has michael steele read a newspaper in the past decade? really? does he not know we're at war?
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absurd comment, something i think certainly should cause him to resign. i think it's unlikely he will, in part because of the timing. it happened at the end of a big news week, chocked full of news heading to a holiday weekend. i don't think people will pay a lot of attention. >> bret: r.n.c. put out a statement saying he is supportive of the war in iraq and afghanistan. what about this, a.b.? >> the r.n.c. can't walk back what was caught on hidden camera at an event where he got the facts wrong about obama choosing a war in afghanistan. bill kristol is right. it's an affront to men and women risking their lives over there for us. it's a war that begun in the bush administration and obviously has been supported by president obama. but he said to demonize the war in iraq and obama was being too cute and he has the facts wrong. he has offended many people. i think it was, it might be strange timing because of the holiday weekend but i don't
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think he escapes this. there is a lot of other con everyone istive voice -- conservative voices joining with bill kristol to call for his resignation. i don't think it will be long. >> bret: no matter flowery response, how they type it up, the comments are tough. >> they can't be undone. the r.n.c. chairman aren't supposed to invent their own foreign policy. i think he has to go. this is a capital offense. if you look back, the republicans have everything at their backs. democrats are on the offensive this year. joe barton apologizing to b.p. and saying you have the head of the r.n.c. saying this, boehner comparing the financial meltdown to an ant. unforced errors helping the democrats. the best thing that the republicans can do, go on vacation and stay on vacation. >> bret: russian spy story, got a lot of coverage this
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week and ink in the tabloids around the country. especially one particular red head russian. but the russian government got upset. the u.s. government did not. >> they were upset and they are caught red-handed, literally. this is serious spying. one of the charges was recruiting people who might end up in the government. this is long-range sleeper cells. pretty or not, it's still a danger. to see our state department essentially attacking the justice department for a role or independent operation saying on their own track we would never essentially have done this is astonishing. >> bret: a.b.? >> i know we had a very happy, close meeting between president medvedev last week with president obama. i don't know how chummy they're feeling. i know he is seeking to really improve relations with russia, but the response from -- the fact there is no scrutiny about this, the fact
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that the obama administration wants to move beyond the incident and not anticipating diplomatic response to the event seems very strange to me. i wonder -- >> bret: steve? >> the russians after being offended initially we made the captures declare it will not affect the u.s.-russians relations. that was a big relief. >> bret: they knew about it before the fries. that's it for the panel. stay tuned for al-qaeda propaganda at a new level.
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>> finally tonight, u.s. officials say an affiliate of al-qaida is launching an on-line magazine called "inspire" to try to recruit inside the u.s. but some of the articles miss the mark. >> with articles like this actual one in the first issue "make a bomb in the kitchen of your mom." not to mention next month's follow-up for moms, "how to scrub down your room when his bomb